PETALING JAYA: Independent adviser Kenanga Investment Bank Bhd has advised shareholders of MCT Bhd to reject the take over offer, which is deemed “not fair and not reasonable”.

In an independent advice circular filed with the stock exchange, Kenanga said the offer is not fair as the offer price of 88 sen is lower than and represents a discount of 50 sen or 36.23% over the estimated fair value per MCT share of RM1.38.

On reasonableness, the offer price represents a discount of 1.1% and 8.3% to its volume weighted average prices of 88.98 sen and 96 sen over the past 12 and 24 months, respectively.

“Premised on the above, we are of the view that the offer is not reasonable,” the adviser noted.

Last month, MCT’s major shareholder Regent Wise Investments Ltd launched a take over offer at 88 sen a piece, after one of MCT’s co-founders agreed to sell his 17.24% interest for RM202.5 million. Regent Wise is a unit of the Philippines-listed Ayala Land Inc.

The offer will remain open for acceptances until 5.00 pm on February 19. It is the offeror’s intention to maintain the listing status of MCT.

The non-interested directors, after considering all aspects of the offer, have concurred with Kenanga’s evaluation and recommendation that the offer is “not fair and not reasonable”.

Accordingly, the non-interested directors recommend the shareholders to reject the offer.

At the noon break, MCT’s share price was unchanged at 87.5 sen on some 178,800 shares done.